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You know how I was looking for books about people-centered entrepreneurship? Checking the Amazon list of books on new enterprises led me to 6 Secrets for Startup Success by John Bradberry. Its main point is that entrepreneurs tend to fall in love with their ideas and end up ignoring reality. Bradberry points out six common failures associated with being too attached to your idea, and suggests ways to avoid those pitfalls. One of those ways is to focus on people instead of on your product or service idea. This is more of an overview book than a step-by-step guide with concrete tactics, but it’s a good wake-up call if you’re starting to get lost in your own dreams.

In addition to the chapter about focusing on people, I particularly liked the chapter on figuring out your math story. Bradberry points out that companies go through different stages and that your core question is different in each stage. In the first stage, the question is: “Do we have a concept that anyone (other than us) cares about?” After you successfully answer that question through prototypes and experiments, you can move on to the question, “Can we actually make money at this? How?” Validating your business model lets you move on to the next question, “Is this business scalable? How can we create significant value over time?” Many businesses struggle because they get all wrapped up in the third question before they’ve answered the first. It’s a good idea to keep those considerations in mind, of course, but it’s important to pay attention to the steps that will get you to that point instead of jumping ahead and pretending you’re a huge company.

What I’m learning from this book: Yes, it seems to make sense to focus on people and let them teach you what they want. (The Lean Startup makes this point as well.) There’s room in the world for wildly visionary companies, but it’s perfectly okay (and much less risky) to start by creating something people already want.

Whom this book is great for: Worried that you’re getting too wrapped up in your entrepreneurial vision? This book might help as a reality check. If you like answering questionnaires as a way of learning more about yourself, you’ll also want to check out the appendix, which has a long self-assessment for founder readiness.

You may also be interested in The Lean Startup (Eric Ries, 2011; see my visual book notes), which has lots of good ideas for testing your business and iterating your way towards success. The Lean Startup book will help translate the chapters on the pull of the market and startup agility into concrete terms.

Eric Ries’ The Lean Startup book is popular, and for good reason. Ries shows people how to make the most of the Build-Measure-Learn loop whether they’re starting a snazzy technology company or creating an intrapreneurial venture within a corporation. Many people get hung up on the idea of launching with a big bang, but if you take this Lean Startup approach, you might learn a lot more by talking to actual customers and by experimenting with with your business. I particularly like the reminder to simulate technology with people first, as it can be tempting to procrastinate getting market feedback because your technology isn’t built yet. Do it by hand. Do it for one person at a time, if needed. There’s plenty to learn, and you don’t have to let development cycles slow you down.

Ries also emphasizes the importance of pivoting, which is what you do when you realize that your original business idea was off the mark. Pivoting is about listening to customers and growing into the business they want you to be, while taking advantage of the things you’ve learned in the past and the assets you’ve already built. Sometimes you should persevere instead of getting distracted by one or two stray opinions, but other times, you should listen to what people (and your experiments!) tell you.

Another key point in this book is that of accelerating this feedback loop. Get faster at building, measuring, and learning from the results. Orient your organization towards it. Practise relentless improvement until your build-measure-learn loop is fast and smooth. Then your company will be an incredible engine for learning!

Whom this book is great for: Starting a company? Read this book. You’ll get lots of tips from it, and you could save lots of time, money, and frustration along the way.

Interested in making things happen even within a large company? You might be able to use the build-measure-learn loop to make your day job even better, or to create scalable value outside your typical job responsibilities.

What I’m learning from this book: I’m using the concierge approach to help people with Quantified Awesome, because it’s fun building something that’s tailored to the way people work and what people want to measure. My goal is to get to the point where people are happy to pay $1-5 a month for tools to help them ask and answer questions about their life using data. I’m also going to work on using the build-measure-learn approach for entrepreneurship (a meta-experiment!), and using the minimum-viable-product approach to writing a book using LeanPub. Someday I might even use split-tests – or better yet, help businesses use them to set up experiments!

The Lean StartupEric Ries (2011: Crown Business)
ISBN: 978-0307887894
Buy this book: Amazon.com (Hardcover, Kindle) Amazon.ca
If you buy stuff through the links above, I get a small commission, yay! I’d tell you it’s a good book even without the commission, so here are some other links: Google Books, Toronto Public Library (book, e-book)

What do you think of this format? Do you want more detail? Less detail? More drawings? More hand-writing? More stick figures? What other books would you like me to visually summarize? I’m near one of the world’s biggest library systems, and I love learning from and sharing good books.

Division of labour: Splitting chores equally may not result in the most efficient or the happiest of marriages. Specialize, remembering that payoffs can change over time.

Loss aversion: People hate to lose, which can result in really drawn-out fights. The advice to “never go to bed angry” can backfire. It’s okay to have time-outs.

Supply and demand: If you want something to happen more often, don’t make it costly or risky.

Moral hazard: It’s easy to take good things for granted. It’s also easy to end up trying to avoid any sort of conflict. The sweet spot is in the middle, where you’re not taking your relationship for granted, but you’re not paranoid about your spouse quitting.

Incentives: Think about the incentives you use and if they’re really effective. Trust can be much more useful than nagging.

Trade-offs: Think at the margin: consider the costs and benefits of small changes. Ignore sunk costs when making decisions. Get over the “it’s not fair” fixation.

Asymmetric information: Communicate clearly. Don’t play games by hiding or withholding information. Figure out the essentials of what you need to share so that you don’t overload your spouse.

Intertemporal choice: It’s easy to make good decisions for the future, but hard to stick with those decisions in the present. Use commitment devices to help you stick with your resolutions or good ideas.

Bubbles: Non-bubbly married life is normal, so don’t stress out if you’re no longer infatuated. Beware of being unduly influenced by groups – just because everyone else seems to be doing something doesn’t mean it’s right for you, too. Don’t get overconfident.

Game theory: Don’t let the urge to retaliate or overcompensate lead to you to wildly polarized positions. Work together to get optimal results, not just individually-optimal results, and use commitment devices to help you stick with it.

The book goes into far more depth, and is an excellent read. It’s illustrated with case studies (problem couples who usually end up patching things up) and lots of research.

Here are some thoughts I particularly like:

If there are areas you care about but you feel helpless in, put in the time and effort to develop the comparative advantage in at least one of them. The authors tell the story of one economist who put the time into at least learning how to bathe an infant so that his wife wouldn’t end up with all the child-rearing tasks – and so that he wouldn’t get tempted to take advantage of that kind of a division.

Looking for things to read? In terms of marriage research, I’d recommend “Spousonomics” and Susan Page’s “The 8 Essential Traits of Couples who Thrive”. What do you like?

A chance remark by the turtle about Daddy Long Legs led me to request the 1955 musical from the Toronto Public Library, and then to read the book online. Fred Astaire’s dance sequences (particularly the first one where he makes drumsticks dance better than most people do) and a couple of good lines, and a nice ending made me smile. Yes, the age gap’s bigger in the movie than it was in the book, and it must’ve been hard for Astaire to perform that with what was going on in his personal life, but it’s still a good one.

The book, on the other hand, was an unexpectedly delightful find. It’s written as a series of letters from this orphan-turned-aspiring-writer, with vivid descriptions and general cheer. I’m half-inspired to do more letter-writing myself, or to bring that kind of vivacity to my blog.

(Will you put up with descriptions of life? In any case, it is my blog, and I would like to be able to remember. =) Prepare for more adjectives!)

Now I am on the lookout for other epistolary gems. I have requested “A Woman of Independent Means” from the library, remembering my mom’s recommendation. Do you have any favourites?

One of the key points of “Effortless entrepreneur” is that you need to create systems and delegate work so that you can free up time to improve your business.

p38. Work on the business from the outside, not in it. A great
entrepreneur builds systems to run the business as if it were a
machine, and stands over it instead of being part of its inner
workings. A business owner should sell that machine to clients and
perfect its functionality, but not sit in the gear room. How many
times have you seen a local store owner answering phones, doing
paperwork, and assisting customers all at once? This business owner
works IN the business, not ON it, and hasn’t identified the different
positions within his business, such as receptionist, salesperson, and
cashier. Instead, he does all those jobs himself.

Creating manuals and training maps for each position from the get-go
forces you to evaluate what needs to be done and helps identify tasks
you might not think of right away. That can mean fewer unpleasant
surprises down the road. At first, you’ll likely have to work IN your
business and do most, if not all, of the work for each position.
That’s common when you start out. But create a system that allows you
to just work ON it as soon as possible. Once that system is operative,
a business gains its true value.

Work on your business, not just in it. It makes sense, although lots of small-business owners find it hard to make that jump.

How can people practice this now? After all, even if you work for a company, you work for yourself, too.

My belief is this: the people that succeed are the people who invest that energy and time and patience and thought a little differently.
What do I mean?

Option A: Let’s say you go to work each day and leave it all on the
table. When you leave work, you’re so drained you can barely make it
home. You sit on the couch, vegetate for a while, eat dinner,
vegetate a bit more, then hit the sack. Or perhaps you’re a parent
and you leave work with just enough energy to get through your
parental requirements in the evening.

Option B: On the other hand, let’s say you go to work and
intentionally keep half of your energy for yourself. You give the
company 50% of the gas in your tank. After you leave, you spend that
50% improving yourself. You go to night classes. You go to the gym.
You go to the library. You go to meetings of professional growth
groups, like Toastmasters.

Well, maybe not 50%. If you can do your work with 80% effort, and then invest the rest into building skills and processes, then it’s like a savvy entrepreneur investing time into building systems, not just fighting fires. Sometimes it’s more like a full-energy work and 20% extra, but I enjoy the work and the learning along the way.

At work, I’m learning about the way we work on projects: the processes, the templates, the questions and conversations. I like making systems, processes, and tools, so I’m learning how to improve things.

I’m working on applying this idea of “working on the business, not just in it” in personal life as well. Hence the household optimizations: batch cooking and a chest freezer, tweaked routines, relationship-building. Capacity-building for future adventures.

I’m looking forward to do even better. At work, I want to to learn more about Drupal 7, consulting, and the processes we have. I’m also looking forward to writing up more notes and coaching others. In the rest of life, I’d like to experiment with delegating again, invest time into becoming a better writer, and continue building wonderful relationships.

I moved more of my book notes online, reasoning that a braindump is better than occasional whining about the lack of a good system. ;) Fellow Emacs geeks who use Org will probably get the most out of this, as they can open it in Emacs and work with the hierarchy, but someday I may figure out a neat little hyperlinked solution that will make it easy for everyone else. Or I’ll pull more and more of these posts into my blog, where they’ll be individually linkable and commentable.

CAPTURE: Using Org + Remember to capture book notes uses the same process as my other notes. Diagrams can be scanned in and attached to files. I used to scan and OCR dogeared pages, but typing or dictating them in is okay, and it helps me review. The capture part of my process is fantastic.

ORGANIZATION: org-refile or copying and pasting are easy, so this part of the process is fine.

REVIEW: I might schedule times to refresh my memory of certain books. I can do that with Org agenda fairly easily.

SHARING: Here’s where the process breaks down a little. org2blog-post-subtree is great, and I’ve used that a number of times to post the relevant subtree of book notes. That adds the notes as entries in my blog, storing the post ID in my Org file so that I can get back to the post afterwards. org2blog also makes it easy to edit entries, hooray.

Once it’s in my blog, people can use the categories to find other entries. However, my current blog layout doesn’t highlight the categories, and it’s not easy to browse the different book-related categories. Maybe it’s worth tweaking a “reading” or “book” category layout page.

Aha! How’s http://sachachua.com/blog/book-notes/ ? It’s a manually-edited list at the top (thanks, Org!), followed by an automatically-generated index. I’ll gradually move my other notes into this system – text notes in my Org file and blog entries for linkability/commentability. Progress…